oldye

I couldn't be there this year any good notes available?

How does KOG compare to LTS in growth rate? Kog is also spending 940 million on capex vs 525-575 million for Lightstream. Lightstream is currently projecting an exit rate of 45,000-47,000 vs 39-41k for Kog. If only Lightstream just turned off the dividend and drilled a few more exploratory wells. Lightstream is worth more than 6 billion dollars at $100 oil. Being cashflow positive combined with a cheap valuation, deep drilling inventory makes it a very attractive takeover candidate right now.

Time to go back and reread Intelligent Investor? The stock market in the. short-term is a voting machine...it doesn't have to, and does not revalue a stock based on fundamental changes, hence creating opportunities for value investors to do what we do. ::) During the cds/short days we were buying after huge moves had already happened, I would not consider bbry up 25% to be a huge move, especially since ffh is trading substantially above tangible book.

Like I said, kind of crazy how we all came to the same conclusions... 100k volume shows that Touchstone is in strong hands I guess..at least at these price levels. 100k is nothing for some of the members of this board, let alone everyone that reads it. Ideally Lts/SD gets bought out before Mr. Market has wakes up...

I think it's interesting how so many of us took similar positions, I sold out of my FFH (after 8 years) and went all in on oil and gas. I own the lts common, sd in the money leaps and touchstone exploration. Don't like talking about touchstone on here because it's so illiquid. But I hope to get back into FFH once these companies realize their value.

back of the envelope: Enterprise Value after recent divestiture ~ 3.9 Billion less 239 million in sold assets since q1 - 3.66 Billion Less value of 80,000 acres in the Duvernay - (600-800 million) 2.8-3.0 Billion Proforma Fund flow from ops - 635-660 million implies a current Funds flow multiple somewhere around 4.4x You can definitely argue that 4.4x cashflow is fair for a commodity company and that is your choice. But right now I think there is a good chance we see higher oil prices and Lts will continue to reduce debt and unlock value. Looks like they put another block of land on sale through RBC, submission deadline is June 19th and we should expect to see another 100+ million reduction in debt if a deal is made. The natural gas injection results look promising and I like having the upside of technological advances that will unlock even more value from their land.

Lots of room left, Lightstream's equity is still a 40-50 cent dollar at current prices. http://www.nytimes.com/2014/06/14/business/energy-environment/oil-industry-in-iraq-faces-setback-to-revival.html “The collapse of Iraq would bring an international oil crisis,” said Dragan Vuckovic, president of Mediterranean International, an oil service company that supplies state oil companies in Iraq. “It would mean crude oil would go up to $150 a barrel. It could spread unrest to Saudi Arabia and Kuwait.” :-[

GM will strike back? :o More importantly Berkeley???? My guess, this is Mohnish's new means of accessing the new car pool lane on the 405.

+1

I like the transcript Idea, I've attended the last 4 or 5 dinners in a row but can't go this year because I have to be at a trade show. Nothing will replace being there in person :'(

That is why just about all of us left first/second chance we got. The few that stayed must be really stubborn.

Isn't he usually about 34% in cash, could be that he's just bullish on $usd. All this domestic production is great for reducing the U.S trade deficit- even Hoisington thinks we'll have 3% gdp growth - should bode well for Canadian companies selling products in $USD

Reinsurance side cars backed by hedge funds looking for a new place to bet. A few years back the late Jack Byrne's White Mountain used these vehicles with horrible results for shareholders. Another trend I've noticed are the new hedge fund run insurance co's like Green Light, Third Point Reinsurance, Sac Re etc. lots of capital and general dearth of insurable events is why I don't currently have any investments in this sector. http://www.propertycasualty360.com/2006/07/17/byrne-says-white-mountains-shareholders-protected-by-sidecar-deal

Food for thought: http://www.afdc.energy.gov/vehicles/natural_gas.html Natural gas powers about 112,000 vehicles in the United States and roughly 14.8 million vehicles worldwide. Currently growing at about 10% per year, how long before natural gas makes up roughly 1% of all vehicles on the road in the U.S? Back to the topic at hand- this is paraphrasing of course: Charlie has stated several times that he thinks using up all of our easy to find hydrocarbon resources for transportation is short sighted and stupid. In that last video I saw he said that he thinks scientists might come up with a solution but it is no way to bet...

During these calls it does sound as if Prem would prefer to mark everything at intrinsic value but like everything with accounting you have to go with the lesser of two evils, and even though MTM is always being manipulated I don't think I would invest in a company where the accountants/regulators/ceo would decide what everything was worth. I guess it isn't fair because it certainly counts on all of their hedges/ stocks/ bonds. But if Fairfax gets to report the quarterly profits and losses of those companies they shouldn't get to mark them to market. I think Prem's language during these calls is consistent with all his previous calls. I wonder who is buying these shares at these prices (I should also probably thank you)